Intrepid Potash Inc. Announces Preliminary Second Quarter 2012 Sales and Production Results and Schedules Second Quarter 2012 Conference Call; Potash Sales Exceeded Outlook
Intrepid Potash Inc. (Intrepid) (NYSE:IPI) announced today preliminary
sales and production results for the second quarter 2012.
This release is focused only on preliminary second quarter 2012
information. Intrepid is scheduled to release second quarter 2012
financial results, including a current market update, capital project
status and operations outlook after market close on Wednesday, August 1,
2012.
Preliminary Sales and Production Results
? | ? | Preliminary | |
| Three Months Ended | |||
| June 30, 2012 | |||
Potash | |||
Production (tons) | 165,000 - 175,000 | ||
Sales (tons) | 180,000 - 190,000 | ||
Average Net Realized Sales Price ($/ton) | $460 - $470 | ||
Cash COGS, net of by-product credit ($/ton) | $175 - $185 | ||
? | |||
Total COGS ($/ton) | $235 - $245 | ||
? | |||
Trio ? | |||
Production (tons) | 30,000 - 35,000 | ||
Sales (tons) | 25,000 - 30,000 | ||
Average Net Realized Sales Price ($/ton) | $315 - $325 | ||
Cash COGS ($/ton) | $200 - $210 | ||
? | |||
Total COGS ($/ton) | $275 - $285 | ||
? | |||
Selling and Administrative | $8 - $10 million | ||
? |
On a preliminary basis, Intrepid estimates that it produced between
165,000 and 175,000 tons of potash and sold between 180,000 and 190,000
tons of potash during the second quarter of 2012.
Sales results for the second quarter reflect our sales and marketing
activities into our diverse core markets, relatively stable agricultural
sales volumes, and a solid industrial and feed market.
Production results for the second quarter include the benefit of record
hoisting rates at our West mine in Carlsbad, New Mexico, where we set
three daily records for tons hoisted and processed in the month of June.
Our Moab, Utah solar solution operations are experiencing a good
evaporation season this summer during our normal summer shutdown in
anticipation of the fall harvest. Additionally, we continue to dedicate
significant resources focused on the long-term improvement plan to
address the production challenges we continue to face at our East
surface facility in Carlsbad, New Mexico.
On a preliminary basis, Intrepid estimates that it produced between
30,000 and 35,000 tons of Trio ? and sold between 25,000 and
30,000 tons of Trio ? during the second quarter of 2012.
During the quarter we intentionally built a modest level of inventory to
accommodate larger bulk sales and manage shipments more effectively.
Intrepid reports 'average net realized sales price,? which is an
operating performance measure. Average net realized sales prices are
derived by subtracting freight costs from gross sales revenue and then
dividing this result by sales tons.
Second Quarter 2012 Conference Call
Intrepid is scheduled to release second quarter 2012 financial results
after market close on Wednesday, August 1, 2012. The teleconference call
to discuss second quarter 2012 results is scheduled for Thursday, August
2, 2012, at 8:00 a.m. MDT (10:00 a.m. EDT). The call participation
number is (800) 319-4610. A recording of the conference call will be
available two hours after the completion of the call at (800) 319-6413.
International participants can dial (412) 858-4600 to take part in the
conference call and can access a replay of the call at (412) 317-0088.
The replay of the call will require the input of the conference
identification number 763324. The call will also be streamed on the
Intrepid website, www.intrepidpotash.com.
In addition, the press release announcing second quarter 2012 results
will be available on the Intrepid website before the call under
'Investor Relations - Press Releases.' An audio recording of the
conference call will be available at www.intrepidpotash.com
through September 2, 2012.
Intrepid is the largest producer of potash in the U.S. and is dedicated
to the production and marketing of potash and Trio ?, a
product produced from langbeinite ore. Intrepid owns five active potash
production facilities -- three in New Mexico and two in Utah. The HB
Solar Solution mine, which is currently under construction, will
increase the number of our active potash production facilities to six.
Intrepid routinely posts important information about its business on its
website under the Investor Relations tab. The website address for
Intrepid is www.intrepidpotash.com.
* * * * * * * * * * *
This document contains forward-looking statements - that is, statements
about future, not past, events. The forward-looking statements in this
document often relate to our future performance and management's
expectations for the future, including statements about our financial
outlook. These statements are based on assumptions that we believe are
reasonable. Forward-looking statements by their nature address matters
that are uncertain. For us, the particular uncertainties that could
cause our actual results to be materially different from our
forward-looking statements include the following:
changes in the price, demand, or supply of potash or Trio ?/langbeinite
circumstances that disrupt or limit our production, including
operational difficulties or operational variances due to geological or
geotechnical variances
interruptions in rail or truck transportation services, or
fluctuations in the costs of these services
increased labor costs or difficulties in hiring and retaining
qualified employees and contractors, including workers with mining or
construction expertise
the costs of, and our ability to successfully construct, commission
and execute, our strategic projects, including the development of our
HB Solar Solution mine, the further development of our langbeinite
recovery and granulation assets, and our North granulation plant
adverse weather events, including events affecting evaporation rates
at our solar solution mines
changes in the prices of raw materials, including chemicals, natural
gas, and power
the impact of federal, state, or local government regulations,
including environmental and mining regulations, the enforcement of
those regulations, and government policy changes
our ability to obtain any necessary government permits relating to the
construction and operation of assets
changes in our reserve estimates
competition in the fertilizer industry
declines in U.S. or world agricultural production
declines in the use of potash products by oil and gas companies in
their drilling operations
changes in economic conditions
our ability to comply with covenants in our debt-related agreements to
avoid a default under those agreements
disruption in the credit markets
our ability to secure additional federal and state potash leases to
expand our existing mining operations
the other risks and uncertainties described in our periodic filings
with the U.S. Securities and Exchange Commission
This document also contains preliminary financial and operating results
for the second quarter of 2012. Preliminary results are our estimates of
actual results based on currently available information. We have not
completed our normal quarterly closing and review procedures. While we
believe our preliminary results are meaningful, they could be materially
different from our actual results. In addition, you should be aware that
preliminary results cover only a subset of all of the financial and
operating information that will be included with our actual results.
All information in this document speaks as of July 17, 2012. New
information or events after that date may cause our forward-looking
statements in this document to change. We undertake no duty to update or
revise publicly any forward-looking statements to conform the statements
to actual results or to reflect new information or future events.
Intrepid Potash Inc.
William I. Kent, 303-296-3006